Complex mining investments

The project of  potassium fertilizer exploration, development and production.

Start Up Stage

The Project is at the start up stage, within which the Company indents, from its own fund, to explore and make a part of probable reserves be government registered.

The Project contemplates exploring and developing a polyhalite ore deposit to produce  the end-product - Sulphate of  Potash (SOP, 50% К2О, price US$ 650 per ton), at the quantity of 0.5 million tons per year.

The budget for construction of the production is  US$ 1 bn at the finished-product output of 0,5 million tones per year.

The finished product is export-oriented and much-in-demand on the markets of China, India, South America; a number of large distributors have preliminary expressed their interest.

The resource potential of the Project is formed by a polyhalite ore deposit with inferred reserves of about 3 billion tons of ore discovered in two sites located in the Kaliningrad region of the Russian Federation, presumably belonging to the category of large deposits.

 

After making a part of probable reserves be government registered, it is necessary to attract investments for implementing the following stages:

  • The development of the industrial process of polyhalite ore mining, extraction and processing into finished product, i.e. Sulphate of  Potash,  detailed TEO, other relating to stages prefeasibility study,  feasibility study;

  • detailed development of design of a mine, mining and processing plant, production plant of finished-product range, and the infrastructure preparation. In parallel, it is advisable to conduct a supplemental reconnaissance  and reserve increase;

  • The construction of a mine, mining and processing plant, production plant ;

  • The operation of the finished product manufacture, sales of the finished products, the expansion of the sulphate product range, and extraction of associated magnesium and gypsum, an increase in the production and processing output.

 

The profitability of the mining, production and sales of the finished product by EBITDA at the selling price of US$ 500 is 67%.

Based on the scope of geological prospecting works already performed, the Company intends to register the reserves under categories С1, С2 at the quantity of 50-60 million tons of К2О in 2017.  

Generally, the reserves are assumed at the quantity of more than 250 million tons of pure К2О in the deposit.

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